Women In Japan Earn Only 70% Of What Men Earn

Meanwhile, there remains a shortage of female representation in leadership positions, with women holding only 9.47% of managerial jobs.

According to a new study done by WTW, Symphony Financial Partners, and Xebral, a considerable gender pay disparity continues among large corporations in Japan when compared to other OECD countries.

According to the report, women working in Japanese-listed firms earn 67.04% more than their male colleagues. The pay gap is slightly wider for part-time workers, with women getting 69.65% of what males earn, compared to 71.64% for full-time workers.

These three industries see the widest disparity between men and women:

• air transportation (women earn 48.40% that of men),

• banking (51.92%), and

• fisheries, agriculture and forestry (56.81%)

These three industries see the narrowest disparity between men and women:

• information and communications (women earn 74.23% that of men);

• securities and commodities futures (73.90%), and

• iron and steel (72.16%)

The analysis also reveals a lack of female representation within leadership positions in Japan-listed companies. At present, females account for 13.11% of board member and officers’ roles, and just 9.47% of managerial roles on average.

The study indicated that larger companies by market capitalisation are more likely to appoint female board members and officers but lag smaller companies when it comes to appointing female in managerial roles.

The three industries with the highest proportion of women in managerial roles:

• air transportation (27.83%),

• services (20.97%) and

• insurance (18.06%)

The three industries with the lowest proportion of women in managerial roles:

• construction (2.52%),

• mining (3.50%), and

• transportation equipment (3.55%)

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The three industries with the highest proportion of women at the board and officer level:

• oil and coal products (19.34%),

• insurance (17.49%), and

• pharmaceuticals (17.46%)

The three industries where women are least represented at the board and officer level are:

• warehousing and harbour transportation services (9.35%),

• iron and steel (9.73%), and

• construction (11.19%)

Japan’s Ministry of Health, Labour, and Welfare (MHLW) has revised the Act on Promotion of Women’s Participation and Advancement in the Workplace (APWPAW), requiring large employers with 301 or more employees in the country to disclose pay disparities between men and women on an annual basis.

While acknowledging Japan’s new adoption of human capital disclosures to assist companies in assessing sustainable value creation and, as a result, advancing gender equality, Takaaki Kushige, Senior Director and Japan Practise Leader, Executive Compensation & Board Advisory, WTW, believes companies must go beyond mere numerical disclosures at the corporate level.

“They must also convey supplemental information about the current state of gender diversity and provide detailed actions that demonstrate commitment to improving their corporate culture,” he continued.